Major fossil fuel-producing states rely heavily on severance taxes

Several states that produce large amounts of fossil fuels rely heavily on severance tax revenuetaxes based on the volume and/or value of oil, natural gas, coal, and other natural resources. On average, severance taxes accounted for less than 2% of state tax collections in 2014, but in three statesAlaska, North Dakota, and Wyomingseverance taxes provided a much larger share of total state tax revenue in that year.